Local vs National Commercial Collection Agency.
Whether you choose a commercial collection agency based in your company's town or your debtor company's town depends on how many different past-due accounts on which you are trying to collect.
If you are dealing with only one bad account, you could hire a commercial collection agency that is local to the debtor. The local agency may have dealt with the debtor before and know the company's finances and the best way to collect from them. If they have had no dealings with the debtor than there is no advantage.
If you have bad accounts from customers in many locations, hire a national collection agency, or one that is located in the same city as your company to ease the reporting process. It's rarely smart to deal with more than one commercial collection agency at once -- you'll just end up confusing yourself and mix up which company is trying to collect which debt.
As a rule, there is never a discount for using a local agency -- either one that is local to your company or the debt dodger. Typically, you will be offered a discount rate only if you are contracting to have multiple past-due accounts collected.
The bottom line is. No matter where the collection agency is located, they are still required to follow the law. They can not go to the debtors house and scare them with physical violence. In fact, many agencies will not accept accounts from debtors in a 50 mile radius of there office to avoid a crazy debtor coming to the office to start trouble with the collector.
If you are dealing with only one bad account, you could hire a commercial collection agency that is local to the debtor. The local agency may have dealt with the debtor before and know the company's finances and the best way to collect from them. If they have had no dealings with the debtor than there is no advantage.
If you have bad accounts from customers in many locations, hire a national collection agency, or one that is located in the same city as your company to ease the reporting process. It's rarely smart to deal with more than one commercial collection agency at once -- you'll just end up confusing yourself and mix up which company is trying to collect which debt.
As a rule, there is never a discount for using a local agency -- either one that is local to your company or the debt dodger. Typically, you will be offered a discount rate only if you are contracting to have multiple past-due accounts collected.
The bottom line is. No matter where the collection agency is located, they are still required to follow the law. They can not go to the debtors house and scare them with physical violence. In fact, many agencies will not accept accounts from debtors in a 50 mile radius of there office to avoid a crazy debtor coming to the office to start trouble with the collector.
About the Author:
You need to hire a Commercial Collection Agency when you have B2B accounts. A full service Collection Agency will help you recover the most money.
posted by Credit Counseling at
4:15 AM
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